Budget cuts shed health jobs and Repat Services

Further cuts to the South Australian government's health portfolio will see services at the acute referral unit at the Repatriation General Hospital closed before Christmas and 105 non-hospital health jobs cut.

SA Health has promised no forced redundancies will be made to achieve the projected ongoing savings of $14 million.

Shadow Minister for Health, Steven Marshall, told 891 Breakfast that reports confirmed by the Auditor General yesterday in parliament revealed the annual budget for health in South Australia for the 2011-2012 financial year had blown out by $177.5 million.

"We've got the crazy situation where we are spending more than we have ever budget for and we're cutting services for the people of South Australia," Mr Marshall said.

South Australian Health Minister John Hill said health budgets were an issue for every state government in Australia, with rising cost pressures, issues with staffing systems and savings measures that had been introduced.

"Our government, and the previous government, has had difficulty meeting targets because of the nature of the business," Mr Hill said.

"We don't turn people away; we try and deliver excellent service to people regardless of their financial circumstances and where they live, and it is very hard to predict what services are needed."

Mr Hill said other states had an attitude of once a department's budget was spent, the service would stop, but the South Australian government did not wish to take that approach.

"We can deliver services more efficiently and in smarter ways, but it causes grief," Minister Hill said.

"People don't like something which they're familiar with being changed."

Mr Hill told ABC News that the 20 patients per day that were being seen by the acute referral unit at the Repatriation General Hospital would be absorbed into other health services and general practitioner visits.

An independent inquiry into the acute referral unit predicted the closure would save the government $1.5 million.